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Third party research

Elanders: Focus on fashion improves organic profile - Nordea

Elanders

This is a third party research report and does not necessarily reflect our views or values

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Elanders presented a solid Q2 report, with its margin increasing roughly 230 bp y/y, although somewhat below our expectations. Nonetheless, the margin has continued to improve, and we expect a group EBIT margin of 6.1% and ~30% EBIT growth for 2021E, driven by an organic growth recovery and efficiency measures. With ITG, its strong fashion & lifestyle brand, Elanders is continuously winning interesting new contracts, most recently RevolutionRace and Stronger. These contracts will not only improve the company's organic growth profile, but also diversify and balance its cyclical automotive exposure. We lower our multiples-based SOTP valuation range to SEK 165-195 (173-203). Marketing material commissioned by Elanders.
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